Very worrying stop press news re Anglo Irish

gozomark

joemardo1 wrote: »

and states dont go bust!

well they do, but the fact the Irish may put all the bad debts into Anglo Irish makes no difference to the safety of savings in Anglo Irish

JamesJames101

I wonder how similar the cases of Ireland and Iceland are. Is there a lot of media hype because the names are so similar.

In Iceland, the banks were BBB rated and their liabilities dwarfed the GDP of Iceland so it was not feasible for the State to guarantee depositors money.

In Ireland, Allied Irish is currently rated AAA as is Ireland itslelf (albeit Ireland's may be downgraded to AAB). The cost of insuring default by Ireland is about the same as that of default by the UK by the way. Ireland is guaranteeing 100% of savers money (up to Sep 2010 anyway). Ireland also is a member of the EU and has the Euro.

Iceland has been bailed out by IMF and other Scandinavian countries. So are we saying that Ireland would not be bailed out - the repercussions would be unthinkable. If they wont let the margin Euro states fail I can't see how (or why) they would let a more major State such as Ireland default. So even IF (big if) Ireland failed, it would be bailed out and savings with Allied Irish would be safe (as guaranteed by government). Even IF (really big if) it was somehow wrangled that the Irish state was bailed out, and it could walk away from its debts (could you imagine what effect this would have on all the less major states?) surely there would still be a legal claim against the Irish state for reneging on its commitments (which are written in Irish law in respect of Allied Irish)?

If I didn't have so much money in Allied Irish I would not even give this a second thought to be honest.

If the case of Iceland did not exist then no-one would be even contemplating that Ireland might go bust. This smacks of fear.

JamesJames101

Oh - is it the fact that Allied Irish was nationalised that is causing all the fuss?

gozomark

it was Anglo Irish, not Allied Irish that was nationalised

Trollfever

joemardo1 wrote: »

and states dont go bust!

Check out South America.


.

soulsaver

gozomark wrote: »

it was Anglo Irish, not Allied Irish that was nationalised

Dunno what to say...

soulsaver

JamesJames101 wrote: »

Oh - is it the fact that Allied Irish was nationalised that is causing all the fuss?

Fuss? What fuss...?

joemardo1

Well the latest news or rather secrets to be disclossed about anglo is that 7 billion was transferred to anglo's books from another institution so as to make anglo's books look good.

soulsaver

joemardo1 wrote: »

Well the latest news or rather secrets to be disclossed about anglo is that 7 billion was transferred to anglo's books from another institution so as to make anglo's books look good.

Yep they keep finding stuff...
http://uk.reuters.com/article/businessNews/idUKTRE51B66320090212?pageNumber=3&virtualBrandChannel=0

but some bright notes from above:
...Analysts also noted that Ireland's general government debt to GDP ratio of 41 percent at the end of 2008 was well below the European average of 60 percent.

BTW the way Spain is going they'll have more unemployed than Ireland has got population....

Andrew64

joemardo1 wrote: »

Well the latest news or rather secrets to be disclossed about anglo is that 7 billion was transferred to anglo's books from another institution so as to make anglo's books look good.

It's a big scandal! Makes you wonder how much of this went on.

http://www.irishtimes.com/newspaper/frontpage/2009/0213/1233867935596.html